The Fair Credit Billing Act (FCBA) establishes procedures for resolving billing disputes involving “open-end credit” accounts such as credit cards. It protects consumers from errors on billing statements, including incorrect charges or amounts, unauthorized transactions, and failure to post payments or credits. Under the Act, consumers have 60 days from the date a billing statement is sent to dispute certain charges over $50. Covered disputes include inaccurate amounts, charges for undelivered or defective goods, and transactions made without authorization. Consumer liability for unauthorized use is limited to $50.
To initiate a dispute, consumers must notify the creditor in writing, providing a description of the error and relevant account details. The creditor must acknowledge the dispute within 30 days and resolve it within two billing cycles, not exceeding 90 days. The Federal Trade Commission (FTC) enforces the FCBA. The law applies to credit card accounts and other revolving credit, but not to debit card transactions. The FCBA differs from the Fair Credit Reporting Act (FCRA): the FCBA addresses billing errors on credit accounts, while the FCRA governs the accuracy and privacy of consumer credit reports. Both statutes are designed to protect consumer financial rights.
[Last reviewed in October of 2025 by the Wex Definitions Team]